Pimco is touting emerging market currencies, particularly in Asia. The bloc is worth buying on prospects for a US-China trade deal, they say.
"According to our valuation models, currencies around emerging markets are closer or close to the cheapest levels in the last two decades," said Roland Mieth, emerging-markets portfolio manager at Pimco in an interview with Bloomberg. "This is something that we recognize and are seeking opportunities to add to currencies."
They favor the Indonesian rupiah and Malaysian ringgit, and are considering adding positions in China's yuan.
Pimco likes the makeup of Indonesia's 'market friendly' cabinet. They are also trimming shorts in the Korean won, Taiwan dollar and Singapore dollar.
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